Health Insurance: Why It Is Important

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In case you don’t know, health insurance is a type of assurance that is given based on agreed terms in case the insured person falls sick or needs medical treatment. The insured life may have a chronic condition requiring medical care for years to come. Let’s know more about it.

Who will pay for the medical expenses?

This is one of the most common questions that people ask. If you have a health insurance, you can have the peace of mind that your health will be taken care of. Actually, it is a type of agreement or contract between you (policyholder) and the company providing health insurance. The purpose of the agreement or contract is to provide protection against costs. At times, the costs are so high that the sick person is unable to pay the bills. As a result, the person is unable to get the care he needs to recover.

While you will pay a monthly or annual premium, you should expect that the amount of premium you are going to pay would be far less than the amount you would pay in case of illness.

Keep in mind that health insurance is a type of benefit that a non-profit organization, private business or a government agency provides. In order to figure out the cost, the company gets an estimate of the collective medical cost of all of the people in the state. Then the risk is divided among the policy subscribers.

As far as the concept goes, the insurer knows that one person may suffer from huge unexpected health care expenses while the other person may incur no expenses at all. So, the expense is spread across a large group of people in an effort to make the health insurance much more affordable for all the insured lives.

Aside from this, public plans are funded by the government. Therefore, they offer extra health insurance to the vulnerable groups like people with disabilities and seniors.

Let’s take an example to understand the concept better. A person with Cerebral Palsy needs special treatment through their lifespan. It’s understood that a chronic illness costs a lot more money than a standard care. Cerebral Palsy may result in a physical impairment that may last for the whole life of the sufferer.

The treatment for this condition may require regular doctor visits, many therapies and long hospital stays. Based on the degree of impairment, you may need special health insurance. Many health care professionals will involve, such as vocational therapists, occupational therapists, physical therapists, orthopedic surgeons, radiologists, pediatrician, neurologists and so on.

Some patients may need the services of more than one. Some may even need a speech pathologist, registered dietician, cosmetic dentists or urologist, to name a few.

So, the coverage offered can help you get some relief as far as the burden of the expenses is concerned. If you don’t sign up, you may suffer from a lot of financial strain and you may need help from other sources like charity organizations and community groups. Therefore, it’s a good idea to benefit from a health insurance.


Health insurance is important for several reasons:

  1. Financial Protection: Health insurance provides financial protection against high medical costs. Medical treatments and hospitalizations can be expensive, and having health insurance helps mitigate the financial burden. It ensures that you have access to necessary medical care without worrying about the cost or the need to pay large sums out of pocket.
  2. Access to Medical Services: Health insurance improves your access to medical services. With insurance, you can visit doctors, specialists, and hospitals within your network, benefiting from negotiated rates and reduced out-of-pocket expenses. This ensures that you can receive necessary medical attention in a timely manner, promoting better health outcomes.
  3. Preventive Care and Wellness: Many health insurance plans offer coverage for preventive services such as vaccinations, screenings, and annual check-ups. By availing these preventive services, you can catch potential health issues early, manage chronic conditions, and focus on wellness, which can lead to better long-term health outcomes and cost savings.
  4. Emergency and Hospitalization Coverage: Accidents and emergencies can happen unexpectedly, and health insurance provides coverage for emergency medical care, hospital stays, surgeries, and critical treatments. Having insurance ensures that you receive prompt and necessary medical attention during such situations, minimizing the financial impact.
  5. Prescription Medication Coverage: Health insurance often includes coverage for prescription medications. This coverage can significantly reduce the cost of necessary medications, making them more affordable and accessible.
  6. Peace of Mind: Health insurance provides peace of mind, knowing that you and your loved ones are financially protected in case of unexpected health issues. It alleviates the stress and worry associated with medical expenses, allowing you to focus on your health and well-being.
  7. Legal Requirement: In some countries, having health insurance is a legal requirement. Failing to comply with the mandatory health insurance regulations may result in penalties or limited access to certain benefits.

It’s important to carefully review and understand the terms and coverage of health insurance policies to ensure they align with your specific needs. Insurance plans may vary in terms of premiums, deductibles, coverage limits, and network providers. It’s advisable to compare different plans and choose one that suits your healthcare needs and budget.

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